Penalize firms that get state aid, outsource jobs

Amid reports that businesses are continuing to apply for and accept taxpayer assistance only to receive it and then outsource Wisconsin jobs, I recently announced plans to introduce legislation to ban companies from receiving taxpayer assistance for five years if they are found to have outsourced jobs from Wisconsin after receiving state aid.

We are seeing all too often cases where companies have received help from state taxpayers for the purpose of creating jobs only to send Wisconsin jobs overseas while state officials appear to ignore it or look the other way.

Recently, Plexus and Kohl's Department Stores have taken tax dollars under the guise of creating jobs, only to turn around and lay off Wisconsin workers in favor of lower-cost foreign labor.

In the case of Kohl's, the company secured up to $62.5 million in state tax credits only to begin threatening layoffs three weeks later. In August 2013, Kohl's cut 67 jobs in Wisconsin and outsourced its accounts payable and other functions to India.

In the latest example, Eaton Corp., based in Ireland, received nearly $370,000 in taxpayer money from the Wisconsin Economic Development Corp. and on two separate occasions has outsourced Wisconsin jobs to Mexico. Most recently, Eaton announced it was closing a division at its Watertown plant, laying off 93 workers in favor of lower cost labor in another country.

When corporations promise to create jobs here in order to receive taxpayer money and then send Wisconsin jobs to another country, one can only assume there is no fear they will be held accountable for their actions.

Under my legislation, any company that is found to have outsourced jobs from Wisconsin after receiving taxpayer-funded assistance would be banned from applying for future taxpayer help for five years.

Gov. Scott Walker's administration continues to struggle to meet his promise of creating 250,000 jobs, falling to 38th in the nation for job creation, and recent reports indicate Wisconsin is on track to see 10,000 layoffs, the most since Walker took office in 2011.

That is why it was heartening to hear the governor admit there are problems with businesses that outsource Wisconsin jobs receiving taxpayer assistance. But protecting Wisconsin jobs requires more than lip service. There needs to be consequences for taking taxpayer money on the promise that you're going to create jobs and then do the opposite.

If we are going to hold people on the bottom rungs of the economic ladder who receive public assistance accountable when they do not fulfill their responsibilities, we should hold those at the top accountable as well.

State Sen. Dave Hansen, D-Green Bay, represents the 30th Senate District of Wisconsin.